Five reasons why now is a great time to buy a home in our market.
Why should you start your home search today? Some buyers might be hesitating because of all the interest rate headlines, but now is not the time to sit on the fence. There are a few very encouraging signs in our market today:
1. Our unemployment is still low. Lots of people are employed and can get approved by banks for loans. As a side note, if you haven’t gotten pre-approved, do so.
2. The market has calmed down. Homes are staying on the market a bit longer, and sellers are pricing their homes a bit nicer. As interest rates elevate and prices fall, it’s still a great time to purchase a home.
3. Our supply is increasing. As the available inventory climbs, it gives you more opportunities to look at homes. You don’t have to make a quick decision in this market.
4. You need to pay attention to rates. This is more of a warning than an advantage, but it’s very important. If rates go up 1%, your buying power will go down 10%. If you were pre-approved for a $250,000 home a month ago when interest rates were around 4.75%, you can only afford a $225,000 house now. You can still buy a home, but you can’t buy as high as before.
5. Homes are coming back on the market. Lots of contracts are falling through, and there are two main causes. First, the home might’ve been in bad condition, so it couldn’t make it through the inspection. Second, the rising rates made the buyer’s mortgage fall through.
Be careful, but don’t get out of the market. These interest rates likely won’t go down, so it’s better if you buy now. If you need any help with financing, inspections, or anything else, call or email me. I’d love to hear from you.